THE founder of the ‘City Car Club’ a car-sharing club which operates in the major cities of the UK looks to be inline for a windfall worth several million pounds. It ahs emerged that he is accepting bids for the company from prospective buyers. The CCC claims to be the ‘greenest’ in the world and is currently in 14 UK cities, including Glasgow and Edinburgh.
It hires out low emission vehicles to its members by the hour or by the day. The vehicles are located for collection in designated parking areas and the company covers the tax, insurance and cleaning. This pioneering initiative was the idea of Edinburgh City Council in 1998, and is run by several private companies. The combination of environmental concerns and spiralling fuel costs has greatly boosted its popularity.
The C.E of the company, James Findlayson, who is also the biggest shareholder with 30%, has hired the corporate finance company Cavendish to handle the sale after receiving serious bids. Mr. Findlayson is able to sell the company providing that 75% of the other shareholders agree to it. The council has never owned the club, and over the years several car clubs from across the UK joined forces to form the present club.
It has been estimated that any take-over of the City Car Club could net £10m for the investors. It’s understood that private equity investors, as well as car rental firms and carmakers, have their eye on the company, as the room for expansion is huge. Club members and environmentalists have both said that they hope the club will continue to be run as it has been.